BL & GY International Company Limited v Hypec Electronic Pty Limited; Colin Anthony Mead v DP Watson (as Liquidator of Hypec Electronics Pty Ltd in liquidation) & Ors [2003] NSWSC 1138

BL & GY International Company Limited v Hypec Electronic Pty Limited; Colin Anthony Mead v DP Watson (as Liquidator of Hypec Electronics Pty Ltd in liquidation) & Ors [2003] NSWSC 1138

Given Mr Mead's successful application and the substantial benefit to Hypec Electronics Pty Limited (in liquidation), it is appropriate that his solicitor-client costs be paid by the company (in liquidation) and be treated as liquidator's expenses with priority, that the liquidator's costs should similarly be paid by the company, and that BL & GY International Co Limited should indemnify the company for those costs. There was no good reason to exclude the costs relating to the McKewen report or to direct payment to solicitors instead of the party entitled.

Jurisdiction
Australia
Judgment Date
04 December 2003
Procedural Posture
Costs Application Following Proceedings Relating to Liquidation and Company Law / Judgment on Costs
Outcome
Costs orders made in favour of Mr Mead and the liquidator, and indemnity ordered from BL & GY International Co Limited.
Legal Topics
["liquidator's Expenses" 'solicitor Client Costs' 'costs Priority in Liquidation']
['corporations Law' 'insolvency' 'costs'] ["liquidator's Expenses" 'solicitor Client Costs' 'costs Priority in Liquidation']

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Procedural Posture

Costs Application Following Proceedings Relating to Liquidation and Company Law / Judgment on Costs

Legal Issues

  1. 1 ["Whether Mr Mead should have his costs paid by Hypec Electronics Pty Limited (in Liquidation) on a solicitor-client basis and those costs treated as liquidator's expenses payable in priority in the winding up; Whether BL & GY International Co Limited should indemnify Hypec Electronics Pty Limited for the costs of Mr Mead and the liquidator; Whether the costs relating to preparation and presentation of the McKewen report should be excluded from costs payable to Mr Mead; Appropriate form of orders regarding payment of costs to solicitors"]

Ratio Decidendi

Given Mr Mead's successful application and the substantial benefit to Hypec Electronics Pty Limited (in liquidation), it is appropriate that his solicitor-client costs be paid by the company (in liquidation) and be treated as liquidator's expenses with priority, that the liquidator's costs should similarly be paid by the company, and that BL & GY International Co Limited should indemnify the company for those costs. There was no good reason to exclude the costs relating to the McKewen report or to direct payment to solicitors instead of the party entitled.

Court Disposition

Costs orders made in favour of Mr Mead and the liquidator, and indemnity ordered from BL & GY International Co Limited.

Orders

  • ["Order that Mr Mead's costs on a solicitor-client basis of proceedings 3832 of 2001 and of the notice of motion filed by Mr Mead in proceedings 1933 of 2001 be paid by Hypec Electronics Pty Limited (in Liquidation) and treated as liquidator's expenses within s 556(1)(a) of the Corporations Act to be paid in...